Posted On: 2019-11-15
Replacement and after sales services market would propel the demand for tires in Kenya - 6Wresearch
Rise in middle class population and availability of attractive credit options has led to an increase in demand for vehicles in Kenya in 2018. Further, Kenya provides huge potential for new vehicle sales and opportunities for spare parts and service providers over the coming years.
According to 6Wresearch, Kenya Tire Market revenues are projected to grow at a CAGR of 6.0% during 2019-25. Kenya failed to implement anti-dumping laws to counter the import of cheaper tire products in the country thereby stifling the growth of local manufacturers. The only local manufacturer, Sameer Tyre Company, operating in Kenya discontinued its local manufacturing of tires in 2016, transforming Kenya into an entirely import driven country for tires.
According to Rachit Gulati, Senior Research Analyst, Research and Consulting, 6Wresearch, "Kenya’s automotive market is largely based around after sales services and assembling of motor vehicles. The tire market in Kenya is predominantly a replacement driven tire market as there is no automobile manufacturing facility in the country.
Additionally, tire companies are making efforts to expand their presence in Kenya tire market. For instance, Michelin entered into a joint venture with automotive and pharmaceutical distribution specialist CFAO to distribute and export premium tires in Kenya," Rachit further added.
According to Gurbani Kaur, Senior Research Analyst, Research and Consulting, 6Wresearch, "Based on tire types, radial tires would be the major revenue generating segment in Kenya tire market during the forecast period due to better ride quality, high heat tolerance and puncture resistant quality."
"Further, two-wheeler tire vehicle type accounted for a major share in terms of volume in Kenya tire market in 2018 due to worsening traffic congestion and availability of cheaper maintenance Chinese brand two wheelers in the country.” Gurbani further said.
Some of the major companies in Kenya tire market include “Michelin Kenya Sdn Bhd, Kumho Tire Co., Inc, Giti Tire Pte. Ltd, Maxxis Tires Kenya, Pirelli & C. S.p.A and others.
“Kenya Tire Market (2019-2025)” report provides an in-depth analysis with 23 figures and 1 table covered in more than 65 pages. Kenya tire market report estimate and forecast the overall Kenya Tire market revenues by origin, types, vehicle types, and end users. The Kenya tire market report provides an unbiased and detailed analysis of the Kenya tire market on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.